In the United States, it’s common to find people in approaching their fifties still saddled with student debt from loans they took out when they were 18. With over 44 million borrowers with a collective 1.5 trillion dollars in debt, the impact of the student debt crisis extends beyond a personal financial burden: it’s destroying the economy.

According to the Brookings Institute, 40% of borrowers in the United States are expected to fall behind on their payments by 2023. In other words, the economic damage from the student loan debt crisis isn’t going to be a massive crash, but more of a slow and steady decline that eats away any long-term economic growth in the U.S.

The impact on the average student is much more acute. With every 1% increase in student loan debt, the likelihood of owning a house decreases by 15%. A lack of physical assets might not seem as looming of a problem right now, but when we see Millenials approaching retirement, they will be no assets to liquidate for cash, no “downsizing” to be done, no reverse mortgage to the rescue.

As the student debt crisis continues to spiral out of control, more and more young people are asking whether higher education really is the best option. However, with the current labor market becoming increasingly competitive and reliant on the skills a higher education offers. Young people who decide to opt-out of higher education out of fear of debt, find it increasingly challenging to get jobs. We are rapidly on the path to higher education becoming something exclusively for the rich. Lower enrollment rates in higher education are linked to lowered innovation and a decline in the skilled workforce. Research shows that the decrease in college graduation rates is correlated to the increasing income inequality and an ever-widening wage gap between high-skilled and low-skilled workers.

Take the case of Mike Meru, a 37-year old orthodontist who was the focus of an article on student debt by The Wall Street Journal in 2018. Meru was able to use his degree from the University of Southern California’s Herman Ostrow School of Dentistry to earn $225,000 in 2017, while working for a corporate practice in Draper, Utah.

Despite this, he still owed $1,060,945.42 in student loans, 6 years after his graduation in 2012. Since he was paying a minimal amount without interest every month, his debt only kept increasing by $130. The Wall Street Journal estimated that in two decades, his loan balance will be over $2 million.

Meru is not alone. The education industry is quickly turning into a niche market, only accessible to students who come from families that can afford to foot the bill.

So, how do we even begin to tackle a problem of this magnitude?

One such way the world is trying is through using technology to amplify reach, quality of discourse and cut costs. Alternatives to higher education such as Schools 42 in France, Kepler in Rwanda and Minerva in the US offer insight into the ever-evolving world of higher education.

Higher education models like these aim to provide their students with the necessary skills to survive in the competitive job market without burning holes through their pockets.

Schools 42, funded by French Billionaire Xavier Niel, is a 100% free computer software engineering school that selects candidates regardless of their background to experience project-based learning.The course was founded on the belief that traditional colleges do not provide students with the necessary skills required for an evolving digital workspace. At Schools 42, students spend hours working on projects, working in groups, and working in professional environments which makes the transition to any workplace easy.

The institution also forgoes more traditional methods of learning, such as a classroom structure and exam-based testing, for a relaxed, peer-to-peer education system. At 42, students work with a flexible curriculum at their own pace and fellow students mentor and motivate each other to help get projects done.

Their website says it all: ‘ (the students at School 42) are so passionate about what they do, they love learning, and no one cares what your background is. We value your work, your creativity, your contributions.’

School 42 uses the opportunities given by technology and the ever evolving digital landscape to provide students with education that is both fulfilling and efficient. Some of their alumni now work at Facebook, Google, Microsoft, and Apple.

In a similar vein, Kepler, a non-government organization in Rwanda, Africa has been working in partnership with the Southern New Hampshire University (SNHU) since 2013 to provide students in East Africa with access to American degrees through a ‘competency-based’ online course.

School 42’s aim to prepare their students for professional work environments is echoed here as well. At Kepler, professional competency courses begin during Week 1 with dedicated career coaches interacting with students throughout their studies. Kepler also offers students the option of personalizing their learning and completing their SNHU courses at their own pace.

Kepler curates and delivers courses from professors at the world’s leading universities through MOOCs and provides in-person coaching, health, and financial support services for a student to thrive in developing economies. 90% of Kepler alumni have found full-time employment or have gone on to pursue higher -level degrees within 6 months of graduation.

Minerva in the US directly tackles the pressure of student tuition and debt on their website. ‘If you are admitted, Minerva is committed to ensuring you can attend’ is a vital line to describe their stance on financial aid and tuition. The line opens the program up to each and every deserving student. Minerva keeps the cost of education low like most tech-based higher education alternatives - by eliminating costs that are not supplemental to learning, like sports teams and faculty tenure. In this way, Minerva guarantees that their costs will make sure none of their students end up in crippling debt.

This liberal arts university without a campus encourages students to learn from each other and through global communities. They offer multidimensional undergraduate and graduate courses that are designed to help develop critical life skills, professional capabilities, and personal character. Minerva also encourages their students to immerse themselves in global experiences through their 7 world cities - London, San Francisco, Buenos Aires, Berlin, Hyderabad, Seoul, and Taipei. This adds another multifaceted layer to their students’ overall learning.

The common thread among these organizations is the commitment to using technology to remove the barriers to entry to higher education. Leveraging the internet helps eliminate a traditional university’s ancillary costs not related to learning, thus reducing the tuition for their students, or offering the same free-of-cost.

Institutions like these are further examples of how media and technology are being used to counter drivers-of-conflict like economic stagnation and poverty and foster positive social change.

Regardless, the struggle to combat growing student debt is far from over. The good news is that there are more and more opportunities for alternative higher education models in the current technological landscape. According to Ryan Craig in his book ‘ A New U’, higher education has always been a “you pays your money and you takes your chance” proposition. But, with advancements in EdTech, we could be looking at a future where most postsecondary training aims at a guaranteed outcome and is free or at least debt-free.

How do you think we should go about tackling the problems of student debt and how can we work towards a future where Ryan Craig’s vision isn’t an alternate path used by few, but commonplace?

With the right mix of policy and pedagogical shifts in higher education delivery, student debts and standardized tests could become a thing of the past. The world needs more bringing their solutions to the table.

What are yours? Let us know.

Can Technology Solve The Student Debt Crisis?